CLASS 2, QUALITY - JIT
MAKING
QUALITY HAPPEN:
Definition of Quality is Conformance to
Specifications
"Fitness for Use"
is different than Quality in that -
A Quality product may not be fit for use in that
the latter deals with specification adequacy, not product conformance to that
specification
Quality has costs associated with its attainment
(or lack thereof)
The "Cost of Quality" (Crosby)
is the cost of doing things wrong (examples?)
|
Failure
Costs |
Detection
Costs |
Prevention
Costs |
|
External: Customer
relations Product
liability Field service
and warranty costs Product
returns Internal: Downtime due
to defects Engineering
change orders Purchasing
change orders Redesign Retesting Rework Scrap |
Process
capability measurement (e.g. control charts, SPC) Product
acceptance Prototype
inspection and testing Receiving
inspection and testing Supplier
surveillance Work-in-process
and finished goods testing and inspection |
Design reviews Engineering drawing
checks Engineering
quality orientation program Engineering
specifications reviews Preventive
maintenance Process
capability studies Product
qualification Quality audits Quality
orientation programs Supplier
evaluations Supplier
quality seminars Tool and
machine control Worker
training and cross-training |
Effective Quality Programs result in "Cost
Avoidance" to the firm
Improving Quality can occur only when everyone -
Top Down, is involved
The Goal of Zero Defects should be sought
Everyone
produces to goal or change the process so that they do
Watchword
is "Do it right the first time"
Zero Defects vs.
traditional views of quality standards:
Zero Defects implies striving for perfection which, although normally
not attainable, promotes continuous process improvement by eliminating
identified defects.
“Root
Cause Analysis” determines cause of defects so that effective corrective action
can be taken.
|
Deming
(14 Points) |
Crosby
(14 Steps) |
Juran
(10 Steps) |
|
1. Create
constancy of purpose for improvement of product and service 2. Adopt
the new philosophy 3. Cease
dependence on inspection to achieve quality 4. End
practice of awarding business on the basis of the price tag alone 5. Improve
constantly and forever every process for planning, production, service 6. Institute
OJT 7. Adopt
and institute leadership 8. Drive
out fear 9. Breakdown
barriers between staff areas 10. Eliminate
slogans, exhortations, and targets for the work force 11. Eliminate
numerical quotas for the work force and numerical goals for management 12. Remove
barriers that rob people of workmanship; eliminate the annual rating or merit
system 13. Institute
a vigorous program of education and self improvement for everyone 14. Put
everybody in the company to work to accomplish the transformation |
1. Make
is clear that management is committed to quality 2. Form
quality improvement teams represented by each department 3. Determine
where current and potential quality problems lie 4. Evaluate
the cost of quality and explain its use as a management tool 5. Raise
the quality awareness and personal concern of all employees 6. Take
actions to correct problems identified through each previous step 7. Establish
a committee for the zero-defects program 8. Train
supervisors to actively carry out their part of the quality improvement
program 9. Hold
a “zero-defects” day to let all employees realize that there has been a
change 10. Encourage
individuals to establish improvement goals for themselves and their groups 11. Encourage
employees to communicate perceived obstacles to management 12. Recognize
and appreciate those who participate 13. Establish
quality councils to communicate on a regular basis 14. Do
it all over again |
1. Build
awareness of the need and opportunity for improvement 2. Set
goals for improvement 3. Organize to reach the goals: Establish quality council Identify problems Select projects Appoint teams Designate facilitators 4. Provide
training 5. Carry
out projects to solve problems 6. Report
progress 7. Give
recognition 8. Communicate
results 9. Keep
score 10. Maintain
momentum by making annual improvement part of the regular systems and
processes of the company |
Phillip Crosby maintains that "Quality
is Free" and that the lowest costs result from doing it right the
first time
Crosby’s 14 point program is somewhat in
conflict with Deming’s slogans,
celebration days are encouraged - more charismatic than Deming’s scientific
approaches)
Negative
impacts (costs) of not having quality programs that work include:
Scrap,
Rework, Repair costs, negative customer relations
In a quality conscious company, defects are not
a cause for blame, but for action
Over time, costs are lowered as quality programs
take effect
“Quality is Free” because quality improvements
can significantly increase profits by eliminating/reducing the “Cost of
Quality” (which Crosby estimates averages 15% in most companies, with 5% or
less being an attainable goal).
Deming’s 14 Points
Malcom Baldrige Award
(TQM attempts to embody these principles during
its implementation)
Making Quality Happen
Traditional role of Inspection has been
de-emphasized in favor of:
Design
Process
Control Improvements
Questions to answer:
Is
Product Design Adequate?
Is
the Process Adequate?
Are
Surveillance techniques [Inspection levels] compatible with desired outcome?
AQL: 100% vs. none vs. acceptance sampling
(Acceptable Quality Level vs. Rejectable Quality Level, 95% / 5%) - Reciprocals
of each other
Deming's view:
Management is responsible for 85% of Quality problems -
Why?
(Problems in Design, Manufacturing, Engineering,
Training, Purchasing, Customer Order Processing)
Draw/Discuss the “Envelope of Quality” a
“variable” control chart (vice “attribute” control chart which measures defects
rather than measurable units like the “variable control chart” does
Table TS-2:
Discuss QC in various production operations
Evaluation of a Quality Program:
Organization:
Policies, i.e. Defined
responsibility, authority of personnel assigned QA functions
Management review and
commitment
Training
Sufficient resources
(personnel, budget, etc.)
Initial Planning:
Review requirements (specification
review)
Identify special
controls, processes, equipment, skills required
Determine
documentation, report flow, integration within Org.
(Marketing,
Engineering, Purchasing, Receiving, Manufacturing, Shipping)
Review Work Instructions for -
Clarity
Do-Ability
Contribution to
desired level of quality
Develop Responsive Corrective Action Programs
(Post Detection Actions) -
Correction of work
instructions
Vendor analysis and
corrective action (jointly with vendors)
Improved technical
data packages to vendors
Analysis of scrap,
rework, repair data (internally and externally caused) to determine root causes
of defects, costs of quality trend analysis
Introduce improvements
and corrections
Follow-up
Standards and Drawings -
Do procedures exist
for maintaining currentness, adequacy?
Control over changes,
configuration control
Evaluation of a Quality Program (continued):
Adequacy/Availability of Test Equipment?
Control Over Purchases
Source selection and
vendor qualification
Vendor quality level
is your quality level
Ongoing vendor
evaluation programs
Feedback, correction
of identified non-conformance's
In-Process Inspection at Critical Points During
Manufacture (or Service)
(Critical points are
established based upon their ability to impact quality)
Completed Item Testing and Evaluation
Sampling
End item
inspection/tear down
Performance
validation/verification
Handling of Materials (Storage, Delivery) to
Preserve Quality, Minimize Damage and Loss
Disposition of Non-Conforming Vendor Supplies
Material
Information System to Provide Feedback
Internal
to Identify Faulty Processes, Causes of Non-Conforming Product
External
to Identify Defective Items Getting to Customers)
JUST
IN TIME PRODUCTION AND PURCHASING
JIT Elements Relating
to Purchasing include:
Quality
and Conformance (more important than price) -
Emphasis
shifting from lowest price to lowest cost characteristics of -
Quality
Performance
Delivery
Long
term supplier/relationships are encouraged
(although
average in U.S. is only 1-2 years)
Some
"Sole or Single Source" Contracts may be necessary, however, at least
two vendors supplying materials may be wise to keep competition viable (primary
and alternate supplier)
Formal
vendor evaluation/certification programs imperative in JIT
JIT
is characterized by frequent deliveries of small quantities directly to point
of consumption on factory floor
Once
vendors are certified, little or no incoming inspection is needed
Vendors
are involved in production decisions, i.e. scheduling, needs and materials
determination
JIT
Purchasing can become an excuse to take advantage of vendors when firms MM and
other management practices are at fault (i.e. faulty planning, design,
marketing forecasting, etc.)
True
Just In Time Production Lowers Everyone's Inventory - How?
|
Traditional
vs. Just In Time concepts: |
|
|
Traditional |
JIT Manufacturing Philosophy |
|
1. It
costs money to make quality products 2.
Engineers and managers are experts.
Workers serve their needs 3.
Mistakes are inevitable and have to be inspected out 4.
Inventory is useful - it keeps production rolling along 5. Lot
sizes should be economic 6.
Queues of work-in-process are needed to be sure that machine
utilization stays high 7.
Automation is valued because it drives labor out of the product 8.
Cost reduction comes by driving labor out of the product and by having
high machine utilization. High rates
of production are valued 9.
Materials should be coordinated and pushed out into the factory 10.
You get flexibility at a cost - excess capacity 11.
Overhead functions are essential 12.
Labor is a variable cost 13.
Machines are sprinters, and pulled hamstrings are to be expected 14.
Procure from multiple suppliers 15.
Expediting and work around are ways of life 16.
Work means getting your hands dirty 17.
Quick and dirty often has to be “good enough” |
1.
Quality is free 2.
Workers are experts. Managers
and engineers serve them 3. Mistakes
are treasures, the study of which leads to process improvement 4.
Inventory is evil - it hides problems that should be allowed to
surface 5. Lot
sizes should be small, preferably one 6.
Once in motion, always in motion.
Production should be just in time; there should be no queues of
work-in-process 7.
Automation is valued because it facilitates consistent quality 8.
Cost reduction comes by speeding the product through the factory. Quick throughput times are valued 9.
Materials should be pulled through the factory 10.
Flexibility comes from contracting all lead times - factory throughput
times, vendor lead times, new product development cycles, order entry and
production planning cycles, engineering change order lead times, and other
lead-times-to-change 11.
Any labor that does not directly add value to the product is waste 12.
Labor is a fixed cost 13.
Machines are marathon runners, slow but steady and always able to run 14.
Procure from a single supplier 15.
Expediting and work around are sins 16.
Buddha and Confucius like things clean 17.
Patience is more than its own reward |